Xero annual loss more than doubles to $35 million as
staff numbers jump

New Zealand's second-largest listed
company lost about $35 million in the year ended March 31,
more than double last year's $14.4 million loss, the
Wellington-based company said in a statement citing
unaudited figures. The company increased staff numbers to
758 from 382 over the year, it said.

Shares in Xero have
soared 229 percent over the past year, making it the
best-performing stock on New Zealand's benchmark NZX 50
Index, as it raised new capital and added workers to expand
in the US, the world's largest economy. Xero had $210
million of cash to fund its growth, up from $78 million a
year earlier, it said today.

"Recruiting senior management
for growth and filling out global teams was a key focus for
the 2014 financial year as Xero added a further 376
employees," the company said. "Xero expects strong growth to
continue for the foreseeable future."

In the past year,
Xero's subscription revenue increased 84 percent to $66.6
million. Australian subscription revenue rose 120 percent to
$27.7 million while New Zealand revenue increased 48 percent
to $23.2 million and UK revenue was up 92 percent to $9.8
million.

"With strong growth expected to continue in these
markets, Xero turns its focus on the important US market,"
the company said.

In the past year, North American
subscription revenue increased 154 percent to $3.3
million.

Total operating revenue rose 83 percent to $70.1
million, Xero said. The strong New Zealand dollar had
reduced the returns it receives from overseas as 66 percent
of operating revenue is in foreign currencies and on a
constant currency basis, operating revenue rose 92 percent,
it said.

Shares in Xero last traded at $37.20 and the
stock is rated an average 'hold' according to analysts
polled by Reuters.

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